Adsense Terminologies

If you want to know more about Google Adsense, here are some Adsense terminologies that might become useful for you:

1. AdSense Earning is calculated as follows: Impression-count x Click-though-rate (CTR) x Cost-per-click (CPC) x smart-pricing-factor (Source).
2. Impression count is the number of times AdSense block is displayed on your website. The higher the number of visitors and the the higher the number of pages they visit, the larger is the impression count.
3. Click-through-rate (CTR) is calculated as the ratio of clicks on the advertisements per impressions. Usually, it is expected that more page impressions result in more CTR, however, this is not a general rule. The CTR for different websites can vary between 0.0% to more than 10.0% depending on various factors.
4. Cost-per-click (CPC) is the price the advertisers are paying Google, once someone clicks on their advertisements. Please note that only part of CPC is paid to you, since Google also takes it share from CPC.
5. Smart-pricing-factor determines how valuable a click is. As an example, advertisers usually target their ads for a certain geological location (e.g., USA). If a user from another country (e.g., France) clicks on the ad, you are only paid a small percentage of CPC because of the smart-pricing-factor.